Investigation of WeWork

Shareholder Alert: Robbins LLP is Investigating the Officers and Directors of WeWork on behalf of Shareholders

In October 2019, WeWork accepted a buyout from SoftBank, a Japanese private equity firm, which included $5 billion in debt, a $3 billion to buyout existing shareholders, the acceleration of $1.5 billion in equity funding, and pushed the firm’s ownership stake in the Company to approximately 80%. As a result, WeWork’s valuation fell precipitously from $47 billion to less than $8 billion, with shareholders seeing the value of their stock decimated while many venture capital investors lost millions. In response to the deal, on November 4, 2019, one shareholder and former WeWork employee filed a class action lawsuit against WeWork’s founder and former CEO, SoftBank, and members of WeWork’s board of directors for “using their control of The We Company to benefit themselves to the detriment of the Company’s minority shareholders.” The complaint also highlighted the Company’s wrongdoing that led to the buyout, alleging WeWork misled shareholders by failing to disclose the extent of its “self-dealing” activities within the Company, which were eventually revealed to the public and diminished the market’s confidence in WeWork. Ultimately, this led to a loss of billions of dollars of the Company’s value and an unfavorable buyout that harmed shareholders.

If you are a former employee of WeWork and own stock, please contact us for more information about your rights and potential remedies.

Send us a message for more information.